Product life-cycle performance report Refer to the production data for Al-Xl drums produced by Erie Information Products as presented in Exercise 17-2.

During the development of the product the firm incurred $70,000 in research and develop- ment cost and $40,000 in product design. New production tooling costs were $18,000, and an on going quality design program has cost $16,000.

Product related promotional activities amounted to $45,000 during the life of the product and sales, order processing, and distribution costs averaged 10 percent of sales revenue over the life of the product. Warranty, rework, and other product service costs totaled $120,000 for the two years the product was sold.

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REQUIRED a. Prepare a product life-cycle performance report for the A1-X1 product. b. What was the product total profit contribution to the firm in dollars and as a percent of sales revenue?